The Confederation of Swedish Enterprise has responded to the call for feedback from the EU platform on sustainable finance regarding the draft report on a social taxonomy from one of its expert groups.
In the report it is suggested that a social taxonomy is established with a structure similar to that of the so called “green taxonomy”, i.e. identifying what constitutes a substantial social contribution and what activities are socially harmful.
This is to be done in two dimensions, a vertical, focusing on the product or service, and a horizontal, focusing on a company’s actions. In addition, criteria are suggested relating to corporate governance and payment of taxes. In the view of the Confederation, the report has not shown the added value of a social taxonomy, nor has it addressed the many risks that such a taxonomy would entail.
Consequently, the Confederation finds that the arguments put forward in the report does not justify extending the Taxonomy Regulation to social objectives and proceed with establishing a social taxonomy.